Over the past year, we’ve been looking at how much aid is delivered to each region to understand how reductions in spending from the United States and other donors might affect each of them. Under the microscope this week is southern Africa.
Also in today’s edition: We look ahead to the World Bank-IMF annual meetings.
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Going south?
The five nations that make up southern Africa received almost $2 billion in official development assistance in 2023, the last year for which we have confirmed data, but much of that looks to be at risk from aid cuts. The United States was the biggest funder that year to Botswana, Eswatini, Lesotho, Namibia, and South Africa, providing more than $886 million — more than 45% of all support — and many programs in the region could be on the chopping block.
Particularly at risk from aid cuts is South Africa, which received more than $550 million of U.S. funding in 2023.
Read: How much aid goes to southern Africa? (Pro)
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Funding activity
We publish tenders, grants, and other funding announcements on our Funding Platform. Here are some of those viewed the most in the past 10 days.
The Asian Development Bank has approved a $470 million grant to boost food security, health services, and climate resilience in Afghanistan.
Italian funder AICS has launched a call for proposals to support vulnerable displaced and returned populations and their host communities in Iraq.
The Asian Infrastructure Investment Bank has signed a $52 million loan agreement to unlock Sri Lanka’s renewable energy potential and advance sustainable development.
The European Union has announced a call for proposals to civil society organizations for the expansion of women’s leadership and political participation worldwide.
Luxembourg Development Cooperation has launched a call for expressions of interest to develop e-learning courses on soft skills and gender inclusion in Kosovo.
The United Nations is seeking firms to create a climate data platform to drive smarter agricultural insurance and risk solutions in Uganda.
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New World Bank order?
“Uncertainty is the new normal.”
That’s the message delivered by Kristalina Georgieva, managing director of the International Monetary Fund, ahead of the joint IMF and World Bank annual meetings in Washington, D.C., this week.
As bilateral donors cut aid, there will be more pressure on the Bretton Woods institutions and other multilateral development banks to support development. But those institutions are also wrestling with their own response to a complex geopolitical environment, and trying to keep a disparate group of shareholders aligned.
That means this week’s meetings might be less about grand declarations and more about avoiding controversy, writes my colleague Adva Saldinger. Or as Clemence Landers, vice president at the Center for Global Development, tells Adva, it might mean going into “stealth mode.”
For more insight into how the meetings are likely to play out, check out our recent event where we spoke to key World Bank watchers about what they expect to see.
Read: Uncertainty ‘new normal’ as World Bank, IMF meet amid aid cuts, discord
ICYMI: World Bank president announces restructuring in staff email
See also: Will the World Bank-IMF meetings try to fly under the political radar? (Pro)
Don’t miss: What to expect from the WB-IMF annual meetings
Foundational issues
One of the world’s largest funders has said it will no longer give money to institutions based in the United States, because of uncertainty about the rules governing nonprofits.
The Children’s Investment Fund Foundation, or CIFF, spent $640 million last year. How much went to U.S. institutions is not entirely clear, but it looks to be in the tens of millions.
CIFF is based in the U.K. and was set up by hedge fund manager Chris Hohn. The foundation said it was cutting funding until the “applicable laws and rules, and the execution of them, are made clearer by relevant authorities.”
It’s not yet clear how profound the impact will actually be, because since the story broke, we’ve heard that at least some organizations delivering CIFF programs are finding ways to hold the money with partners based elsewhere in the world.
But it’s a nervy move by a major donor, and it’s provoked fears that other funders might follow suit.
Read: Major foundation pauses grants to US, citing unclear policy changes
Private portal
European Commission President Ursula von der Leyen has launched a new platform aimed at attracting private sector finance to development projects.
Speaking at a high-level summit of European Union members, von der Leyen said the new portal would serve as a “single entry point” for companies, and offer a place for countries to hear from companies about their needs. She said it was intended to get companies involved not just in implementation but in setting priorities.
But some civil society organizations have said the hub will promote a “Europe First” attitude that puts EU competitiveness ahead of global south development needs — a criticism that’s been leveled at the larger initiative it’s part of, the Global Gateway.
“This hub will serve to implement the problematic approach that underpins the Global Gateway,” María José Romero, policy and advocacy manager at Eurodad, tells Devex.
Read: EU unveils investment hub to boost private sector engagement
ICYMI: How to access the EU’s €300B Global Gateway — key tips from the experts (Pro)
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About the author
David Ainsworth@daveainsworth4
David Ainsworth is business editor at Devex, where he writes about finance and funding issues for development institutions. He was previously a senior writer and editor for magazines specializing in nonprofits in the U.K. and worked as a policy and communications specialist in the nonprofit sector for a number of years. His team specializes in understanding reports and data and what it teaches us about how development functions.
